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Totals-cum-balances Method


This method is a blend of totals method and balances method. In this method four columns for amount are prepared. Two columns for writing the debit and credit totals of various accounts and two columns for writing the debit and credit balances of this accounts. However, this method is also not in practice because it is time consuming and hardly serves any additional or special purpose.

 

Let us now learn how the trial balance is prepared using each of these methods with the help of the following example:

 

Mr. Rawat's ledger shows the following accounts for his business. Help him in preparing the trial balance using:
  1. Totals method,
  2. Balances method,
  3. Totals-cum-Balances method.

Rahul's capital Account

Dr.

 Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

2005
Dec.31

Balance c/d

 

60,000

---------60,000
---------

2005 Jan.01
2006 Jan.01

Balance b/d
Cash

 

 

Balance b/d

 

40,000
20,000
---------60,000
---------60,000

 

Rohan's Account

Dr.

Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

2005 Dec.31

Cash
Balance c/d

 

40,000
20,000
---------60,000
---------

 

2005 Jan.01
2006 Jan.01

Balance b/d
Purchases

 

 

Balance b/d

 

10,000
50,000
---------60,000
---------20,000

 

Machinery Account

Dr.

Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

2005 Dec.31

 




2006 Jan 1

Balance b/d




Balance b/d

 

20,000

----------20,000
----------17,000
 

2005 Dec 31

 

 

Depreciation

 

3,000
17,000
----------20,000
----------

 

 

 

Rahul's Account

Dr.  Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005 Jan 01

 

2006 Jan 1

Balance b/d

sales

 



Balance b/d

 

15,000

 

60,000
---------75,000
---------20,000

2005 Dec 31

 

 

Cash

Balance c/d

 

55,000

20,000
---------75,000
---------

 

 

Sales Account

Dr.  Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

       

2005

Rahul
Cash

 

 

60,000
10,000
--------70,000 

Cash Account

Dr. Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

2005 Jan 01

 

 

 

 

2006

Jan 01

Balance b/d

Capital

Rahul

Sales

 

 

Balance b/d

 

15,000

20,000

55,000

10,000
-----------1,00,000
-----------43,000

2005 Dec 31

 

Rohan

Wages

Purchases

Balance c/d

 

 

40,000

5,000

12,000

43,000
-----------1,00,000
-----------

 

 Wages Account

Dr. Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

2005

 

Cash

 

 

5,000
--------5,000
--------

       

Depreciation Account

Dr. Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

2005

 

Machinery

 

 

3,000
--------3,000
--------

     

 

 

Purchases Account

Dr.                       Cr.

Date

Particulars

J.F.

Amount
Rs.

Date

Particulars

J.F.

Amount
Rs.

2005

 

Rohan

Cash

 

 

50,000

12,000
---------62,000

     

 

 


The trial balance under the three methods is illustrated below:
  1. Trial Balance as at March 31, 2005 (Using Totals Method)

Account Title

L.F

Debit Amount
Rs.

Credit Amount
Rs.

Rawat's capital

Rohan

Machinery

Rahul

Sales

Cash

Wages

Depreciation

Purchases 

 

 

40,000

20,000

75,000

 

1,00,000

5,000

3,000

62,000

60,000

60,000

3,000

55,000

70,000

57,000

Total

 

3,05,000

3,05,000

  1. Trial Balance as at March 31, 2005 (Using Balances Method)

Account Title

L.F

Debit Amount
Rs.

Credit Amount
Rs.

Rawat's capital

Rohan's capital

Machinery

Rahul

Sales

Cash

Wages

Depreciation

Purchases 

 

 

 

17,000

20,000

 

43,000

5,000

3,000

62,000

60,000

20,000

 

  

70,000

Total

 

1,50,000

1,50,000

  1. Trial Balance as at March 31, 2005 (Using Totals-cum-Balances Method)

Account Title

L.F.

Debit Total
Rs.

Credit Total
Rs.

Debit Balance
Rs.

Credit Balance
Rs.

Rawat's capital

Rohan's capital

Machinery

Rahul

Sales

Cash

Wages

Depreciation

Purchases

 

 

40,000

20,000

75,000

 

1,00,000

5,000

3,000

62,000

60,000

60,000

3,000

55,000

70,000

57,000

 

 

17,000

20,000

 

43,000

5,000

3,000

62,000

60,000

20,000

 

 

70,000

   

3,05,000

3,05,000

1,50,000

1,50,000





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